Maharashtra halves duty on awards, reality shows; ups levy on films

MUMBAI: The Maharashtra government on Friday halved the entertainment duty to be paid by the organisers of various award functions and reality shows, while increasing the service charges on movie tickets. The government, however, appears to be undecided over levying entertainment tax on the IPL.

“The entertainment duty in respect of the award function organised only for invitees without selling tickets shall be 12.5% of the total sponsorship amount,” the amendment to the Bombay Entertainment Duty Act 1923, which was passed by the Legislative Council on Friday, said.
Earlier, the duty charged on an award function was 25%.

The amendment was made following demand from the cinematographers’ association and various theatre owners associations to reduce the existing entertainment duty. They had also requested to increase service charges so as to enable them to meet the increasing maintenance charges.

“With a view to strengthen the infrastructure of cinemas, the government has decided to increase service charges from Rs three to five for ordinary and air-cooled cinemas and from Rs four to six for air-conditioned cinemas,” the amendment said.

The minister of state for revenue Prakash Solanke informed the Council that the increase in the service tax was to provide more facilities to the audience. The legislation was mum on the entertainment tax on IPL.

Earlier, state finance minister Sunil Tatkare had announced a tax waiver for the cricketing extravaganza, but chief minister Ashok Chavan overruled him later saying a final decision has not been taken yet.